Showing papers on "Managerial economics published in 2011"
Posted Content•
TL;DR: In this article, the authors proposed a new structural economics framework to complement previous approaches in the search for sustainable growth strategies, which takes into account structural change and its corollary, industrial upgrading.
Abstract: As strategies for achieving sustainable growth in developing countries are re-examined in light of the financial crisis, it is critical to take into account structural change and its corollary, industrial upgrading. Economic literature has devoted a great deal of attention to the analysis of technological innovation, but not enough to these equally important issues. The new structural economics outlined in this paper suggests a framework to complement previous approaches in the search for sustainable growth strategies. It takes the following into consideration: First, an economy's structure of factor endowments evolves from one stage of development to another. Therefore, the optimal industrial structure of a given economy will be different at different stages of development. Each industrial structure requires corresponding infrastructure (both"hard"and"soft") to facilitate its operations and transactions. Second, each stage of economic development is a point along the continuum from a low-income agrarian economy to a high-income industrialized economy, not a dichotomy of two economic development stages ("poor"versus"rich"or"developing"versus"industrialized"). Industrial upgrading and infrastructure improvement targets in developing countries should not necessarily draw from those that exist in high-income countries. Third, at each given stage of development, the market is the basic mechanism for effective resource allocation. However, economic development as a dynamic process requires industrial upgrading and corresponding improvements in"hard"and"soft"infrastructure at each stage. Such upgrading entails large externalities to firms'transaction costs and returns to capital investment. Thus, in addition to an effective market mechanism, the government should play an active role in facilitating industrial upgrading and infrastructure improvements.
690 citations
TL;DR: In the sub-discipline of development economics, entrepreneurship is largely absent from explanations of growth and development as mentioned in this paper, which may be because arguments and evidence marshaled by other economists studying entrepreneurship fail to convincingly show that entrepreneurship is a binding constraint on development in the poorest countries.
243 citations
TL;DR: In this article, it is argued that whilst operational and support processes deliver performance presently, it is the managerial processes that sustain performance over time, and it is these processes that influence organisational performance.
Abstract: Purpose – It is argued that whilst operational and support processes deliver performance presently, it is the managerial processes that sustain performance over time. The purpose of this research paper is to better understand what these managerial processes are and how they influence organisational performance.Design/methodology/approach – The theoretical background is reviewed covering literature on the subject of business process management, resourced‐based view (RBV), dynamic capabilities and managerial processes. A research framework leads to qualitative case study‐based research design. Data are collected from 37 organisations across Europe, classified according to their performance.Findings – Findings suggest that the five managerial processes and their constituent managerial activities, identified through the empirical research, influence performance of organisations as an interconnected managerial system rather than as individual processes and activities. Also, the execution and maturity of this m...
138 citations
TL;DR: In this paper, the authors apply a simple framework of analysis to describe the Latin American business environment and detect research opportunities, focusing on four aspects of the region: institutional context, macroeconomic environment, consumer profile, and natural resource endowments.
Abstract: Executive Overview Latin America is a paradoxical region. It has unique conditions that make it one of the most attractive contexts worldwide for doing business, but it also faces serious challenges that severely underscore these opportunities. We apply a simple framework of analysis to describe the Latin American business environment and detect research opportunities. For that, we focus on four aspects of the region: (1) the institutional context, (2) the macroeconomic environment, (3) the consumer profile, and (4) the natural resource endowments. We summarize firms' strategic choices that result from this context and analyze their consequences for new business creation, incumbents' survival and growth, and sources of competitive advantages. We conclude by outlining a management research agenda.
122 citations
Posted Content•
TL;DR: The managerial challenges posed by employees using these amenities for job search, shopping sprees, personal relationships, in a word, general goofing off, have long ago already been overcome by employers as discussed by the authors.
Abstract: Often, new technology brings in its train unprecedented problems. As far as computers, e-mail and the internet are concerned, this certainly holds true in many arenas. But there is one aspect of this new technology which does not present additional difficulties: cyber-slacking. The managerial challenges posed by employees using these amenities for job search, shopping sprees, personal relationships, in a word, general goofing off, have long ago already been overcome by employers. There is “nothing new under the sun” in at least this one dimension of the computer age.
83 citations
TL;DR: In this paper, the authors reviewed developments in both environmental economics and ecological economics with respect to their progress towards environmental interdisciplinarity and towards providing solutions to environmental problems, and the contribution that interdisciplinary knowledge has made to the success of each field is analysed in terms of understanding, influence and effectiveness.
Abstract: SUMMARY This paper reviews developments in both environmental economics and ecological economics with respect to their progress towards environmental interdisciplinarity and towards providing solutions to environmental problems. The concepts, methods, theories and assumptions of each field of knowledge are reviewed and the extent to which they depart from the dominant neoclassical paradigm of economics is assessed. The contribution that interdisciplinarity has made to the success of each field is analysed in terms of understanding, influence and effectiveness and the constraints that it has imposed upon that success. Environmental economics has adopted the dominant economic neoclassical paradigm, including the power of the market to allocate environmental
53 citations
TL;DR: A systematic approach to the literature review covering business process and strategic management fields concludes that managerial processes are critical for sustaining and developing competitive advantage, but our understanding as to what they are, their contents and how they function is limited.
Abstract: Motivated by the view that the managerial processes underpin the dynamic capabilities of the firm, this article seeks to review the current state of knowledge on managerial processes and propose a research agenda towards a better understanding of managerial processes. A systematic approach to the literature review covering business process and strategic management fields concludes that managerial processes are critical for sustaining and developing competitive advantage, but our understanding as to what they are, their contents and how they function is limited. A definition for managerial processes is proposed and the context within which managerial processes function is identified. An empirically based research agenda, comprising research questions, is outlined that would serve to enhance our understanding of the managerial processes that underpin dynamic capabilitie
46 citations
TL;DR: The authors reviewed some of the behavioral concepts in economics that are most likely to inform education research and policy, including prospect theory, framing effects, status quo bias, paradox of choice, and intrinsic motivation.
Abstract: Over the past several decades, researchers have used economics to understand a number of issues in education policy. This article argues that some education researchers have defined economics too narrowly, neglecting several areas of economics research that cut across disciplinary boundaries. One subdiscipline of economics that might be of use in education, but which has not been applied much to it, is behavioral economics, which incorporates psychological knowledge about human behavior to enhance and extend economic models of decision making. This article reviews some of the behavioral concepts in economics that are most likely to inform education research and policy—prospect theory, framing effects, status quo bias, paradox of choice, and intrinsic motivation—and suggests directions for further research.
43 citations
TL;DR: The authors compared the effectiveness of online and paper-based assignments and tutorials using summative assessment results and found little evidence that the way in which one completes an assignment has an effect on how one performs on a particular section of the exam.
Abstract: This article compares the effectiveness of online and paper-based assignments and tutorials using summative assessment results. All of the students in a large managerial economics course at National University of Ireland, Galway were asked to do six assignments online using Aplia and to do two on paper. The authors examined whether a student's performance on a particular section of the exam is affected (1) by how he or she performed on the corresponding assignment and (2) by whether the student completed the corresponding assignment on paper or online. Our results provide little evidence that a student's performance on an assignment helps him or her perform better on the corresponding section of the exam. We also found little evidence that the way in which one completes an assignment—on paper or online—has an effect on how one performs on a particular section of the exam.
36 citations
34 citations
Journal Article•
TL;DR: In this paper, the authors present the theoretical framework of a "new structural economics" and propose using a neoclassical approach to study economic structure and its evolution as well as the roles of state and market in development.
Abstract: Economic development in essence is a process of continuous technological and industrial innovation and structural transformation.When development economics became a distinct discipline after World War II,theories of structuralism prevailed and economic structure was assumed to be exogenous.At that time,structuralism focused on the prevalence of market failures and the role of state in changing industrial structure and promoting economic development.The structuralist policy of state-led industrial upgrading failed in almost all developing countries.By the late 1970s,the dominant view in development economics,which eventually came to be known as the "Washington Consensus",shifted to stress the frequent government failures and to promote lopsidedly the efficacy of free market in advancing economic development.The new view also neglected the issues of economic structure and its evolution.This paper presents the theoretical framework of a "new structural economics".It proposes that a country's economic structure is endogenous to the economy's endowment structure.It also proposes using a neoclassical approach to study economic structure and its evolution as well as the roles of state and market in development so as to remedy deficiencies in the field of development economics.
Posted Content•
TL;DR: The level of aggregation of knowledge production and intangible consumption classifies large conurbations with unconventional metrics, establishing new types of scales for "world cities" as mentioned in this paper, where people, capital and ideas are concentrated (consumer hubs).
Abstract: Global markets are revolutionising the basic concepts of research, manufacturing and marketing, and developing corporate networks based on competitive alliances. In global managerial economics, knowledge management thus becomes the crucial competitive factor, creating knowledge production hubs, particularly in cities with a high level of intangible consumption, where people, capital and ideas are concentrated (consumer hubs). The level of aggregation of knowledge production and intangible consumption classifies large conurbations with unconventional metrics, establishing new types of scales for ‘world cities’.
Posted Content•
TL;DR: The use of game theory in the field of regional economics has been extensively studied in the literature as discussed by the authors, with a focus on the use of social network analysis for the analysis of economic decisions regarding spatial issues such as the location choices of firms and households.
Abstract: The construction of formal models that deal with space observed a huge increase since the late 1980s. As Fujita et al. (1999) stress, the field of regional economics experienced a revival with the emergence of new analytical tools such as the diffusion of imperfect competition models, networks and mathematical programming. One of the most powerful tools within social science in general and economics in particular is game theory. This methodology allows for the formal analysis of the interactions among economic agents and, therefore, it is particularly useful for the study of economic decisions regarding spatial issues such as the location choices of firms and households; infrastructures, transports and communications; regional and urban policy; innovation and regional development; and regional labour markets. For this reason, a concrete, quantitative systematization of the use of this tool on regional economics research seems to be a relevant topic in the agenda concerned with progress in regional science. In this paper we study research in regional economics and provide a quantitative retrospective of the use of game theory in this field. Our main goal is twofold. First, we intend to categorize the contributions in the use of this analytical tool - by main research subjects, by authors’ affiliations, by journal, etc. - using a bibliometric approach. Second, by analysing co-authoring and using Social Network Analysis, we want to test the existence of structures upon which distinct co-authorship emerges. In broader terms, the results of this research provide a framework for analyzing the potential use of game theory in regional economics, suggesting new future research directions.
TL;DR: In this paper, a classroom experiment that illustrates the concepts of market power and the Lerner index is described. But the experiment is limited to a single class and can be used in a wide variety of courses including principles of economics, intermediate microeconomics, industrial organization, international trade, managerial economics and MBA classes.
Abstract: We describe a classroom experiment that illustrates the concepts of market power and the Lerner Index. Students are organized in groups, each making a decision for a monopolist. Monopolists face different (unknown) demand curves, each with a different (constant) elasticity. Through repetition, students discover the profit maximizing solution and find that different monopolies have different mark-ups. The experimenter then reveals the unknown demand curves and illustrates how different elasticities are graphically and numerically connected to mark-ups and the Lerner index. The experiment can be used in a wide variety of courses including principles of economics, intermediate microeconomics, industrial organization, international trade, managerial economics and MBA classes. The experimental design is flexible: it can accommodate different class sizes (ranging from 10 to 100+ students) as well as different demand parameterizations. Finally, to reinforce the economic concept of profit maximization (MR=MC) in this setting, we also suggest and describe the implementation of an exercise based on the experimental design.
01 Jan 2011
01 Jan 2011
TL;DR: In global managerial economics, knowledge management becomes the crucial competitive factor, creating knowledge production hubs, particularly in cities with a high level of intangible consumption, where people, capital and ideas are concentrated (consumer hubs) as mentioned in this paper.
Abstract: Global markets are revolutionising the basic concepts of research, manufacturing and marketing, and developing corporate networks based on competitive alliances. In global managerial economics, knowledge management thus becomes the crucial competitive factor, creating knowledge production hubs, particularly in cities with a high level of intangible consumption, where people, capital and ideas are concentrated (consumer hubs). The level of aggregation of knowledge production and intangible consumption classifies large conurbations with unconventional metrics, establishing new types of scales for ‘world cities’.
Journal Article•
TL;DR: In this paper, a discursive analysis of history and the present status of economics is presented, and conditions which could give a way to the radical reform of mainstream economics are discussed.
Abstract: One had to know the rules governing diverse actors’ behavior on the USA housing market to recognize the enlarging bubble and foresee an inevitable crash. Apart from the market actors, the experts being in direct contacts with these actors (for example, conducting in-depth interviews) could be aware of these rules. Generally speaking, social and economic regularities are generated by the fact that people behave according to the socially constructed rules which are explained, argued and learnt through telling stories. It means that we should analyze these stories for revealing the social and economic regularities. As far as the modern economics is not interested in studying economic actors’ discourses, it loses a capacity to understand and foresee important economic phenomena. Discourse analysis does not imply a departure from the strict scientific standards with their origins in natural sciences; it rather comes closer to them because all social interactions are mediated by language. The paper proposes an alternative to a variety of forms developed by institutional economics as well as most recent perspectives of economic theory including behavioral and experimental economics. The first part of the paper published in the current issue of the journal (May 2011) describes discursive methodology and its recent applications to the analysis of economic phenomena. The second part of the paper will be published in the next journal issue (September 2011). It is devoted to a discursive analysis of history and the present status of economics. It revises the results of «Methodenstreit» and discusses conditions which could give a way to the radical reform of mainstream economics. институциональное знание
01 Jan 2011
TL;DR: In this article, student performance in MBA managerial economics classes, analyzing learning differences between those in online and traditional lecture classes, was analyzed. And they found that the grade difference between stronger and weaker students, as defined by aptitude and effort, is significantly larger for online students.
Abstract: The use of online course offerings in college, including graduate business courses, has grown sharply in recent years (Eastman, Swift, Bocchi, Jordan and McCabe, 2003). Results of previous research comparing student performance in lecture versus online classes are mixed. This paper focuses specifically on student performance in MBA managerial economics classes, analyzing learning differences between those in online and traditional lecture classes. In addition to comparing overall performances, we tested further to determine if gender, ethnicity, and levels of achievement and aptitude are factors in explaining differences in performance between, as well as within, lecture and online classes. Our empirical results demonstrate that the grade difference between stronger and weaker students, as defined by aptitude and effort, is significantly larger for online students.
TL;DR: By studying the effects of uncertainty on profit maximization problems, students can also learn to appreciate that dealing with uncertainty is important in many business decisions.
Abstract: Decision trees and influence diagrams are utilized to analyze and solve profit maximization problems from economics. As a complement to traditional analytical methods for solving these problems, use of these graphical representations allows students to learn about the effects of uncertainty on pricing and capacity choices. Decision trees are first used to model a firm's production capacity and pricing decisions when these choices are made simultaneously under certain and uncertain demand. The decision tree approach is next extended to a situation where the firm makes its capacity and price selections under different information constraints. The use of these problems as part of a case assignment in a writing-intensive managerial economics course is discussed. Influence diagrams are also presented as an alternative modeling technique that can easily accommodate more potential values for decision variables when solving these problems. By studying the effects of uncertainty on profit maximization problems, st...
01 Oct 2011
TL;DR: Experimental economics plays an important role in theory and model falsification as well as in digging up behavioral regularities in individual and interactive decision making as discussed by the authors, and has been instrumental in the development of new models of other-regarding preferences, boundedly rational reasoning, adaptive learning, and noisy equilibrium models.
Abstract: Understanding individual and social decisions and how they are affected by the environment and institutional constraints is at the heart of the the social sciences. With the exception of psychology, traditionally in the social sciences empirical evidence is gathered via happenstance data. Such data are plagued with endogeneity problems and unobserved variables which make it difficult to draw causal inferences and reliably test theories. In the last thirty years laboratory experiments are increasingly adopted, especially in economics. Experimental economics research is often based on formal economic or game theoretical models with clear-cut rules which allow unambiguous inferences from changes in environmental variables. This model-based approach is tightly linked to two principles of experimental economics: the use of task related (monetary) incentives and the proscription of deception. Experimental economics plays an important role in theory and model falsification as well as in digging up behavioral regularities in individual and interactive decision making. Research in experimental economics was instrumental in the development of new models of other-regarding preferences, boundedly rational reasoning, adaptive learning, and ‘noisy’ equilibrium models. The toolbox of economics experiments informs research in decision neuroscience and is also applied in many other fields of the social sciences. Undoubtedly, experimental economics will continue to challenge newly emerging models and suggest new theories of human behavior and keep on to significantly contribute to knowledge in the social sciences.
01 Jan 2011
TL;DR: Lobb et al. as discussed by the authors developed guidelines for "best practice" approaches to risk and uncertainty in environmental economics for guiding policy development and implementation, taking into account key issues such as costs, irreversibility, adaptation and dynamics.
Abstract: A lack of awareness and understanding of risk and uncertainty can lead to poor decision making and higher costs for policy providers, as not accounting for them may produce policy which is inflexible and with a negative effect on welfare. Further, misunderstanding of and/or failure to account for risk and uncertainty can inhibit research and development for policy to which environmental economics can contribute (for example, in developing effective measures of sustainability). The aim of this project is to develop guidelines for ‘Best Practice’ approaches to risk and uncertainty in environmental economics for guiding policy development and implementation, taking into account key issues such as costs, irreversibility, adaptation and dynamics. These guidelines are developed by examining the frameworks commonly used by environmental economists to account for risk and uncertainty (such as the Precautionary Principle and Cost Benefit Analysis) as well as specifically developed theories (e.g. Quiggin’s Rank Dependent Utility Theory), borrowing from other disciplines (e.g. Prospect Theory) and drawing attention to lesser known ideas (e.g. Shackle’s Model). ∗ Nothing in this paper necessarily represents the policies or views of the NSW Government, the Minister for Climate Change and the Environment, or the Department of Environment, Climate Change and Water (NSW) Υ Senior Economist, Department of Environment, Climate Change and Water (NSW) alex.lobb@environment.nsw.gov.au
01 Jan 2011
TL;DR: In this article, the authors start with the proposition that today in economics we do not have or "cannot" have a theory that is universal, which in other words is not taxonomic.
Abstract: We start with the proposition: today in economics we do not have or “cannot” have a theory that is universal, which in other words is not taxonomic.
Book•
03 Jan 2011
TL;DR: Boyes as discussed by the authors introduces non-majors to the power of economics in business decision making, and departs from convention to illustrate the role of economic intuition in making sound business decisions.
Abstract: Boyes introduces non-majors to the power of economics in business decision making. The text's intuitive approach clearly highlights how economics influences marketing, management, and other business-related decisions. In addition to traditional principles of price theory "Managerial Economics" examines organizational behavior, strategic management, human resource management, and emerging issues such as game theory, TQM, and information economics. "Managerial Economics" departs from convention to illustrate the role of economic intuition in making sound business decisions. While other texts focus on quantitative analysis, this book enphasizes logic and conceptual modeling - reinforced by real-life examples - to highlight the pivotal link between economics and key business concerns such as costs, prices, markets, and personnel. Students learn to weigh the strategic costs and benefits of each business choice, instead of relying on popular quick-fix solutions. Ideal for students in MBA programs and less quantitative courses, "Managerial Economics" demonstrates the power of economic insight on business decision making.